Non Financial measures + Report writing

Hi @guju, allow me to filter the measures that you have mentioned.

The most essential knowledge of measures is to know how to apply it on a different context of business models, so different measures under the same category may appear for different firms. However, they are all correlated to a firm having an extended value chain which includes service as a primary element.

In an Alex Watt exam style, be careful you don’t fall into the trap of coming out with measures and say one ratio goes up or down – this earns you no marks. You must explain the reason, its significance to the firm, and (if marks permit) suggest a likely recommendation to use the ratio to improve the management.

You have included measures for FLEXIBILITY and PRODUCTIVITY which is on the business operating systems level of Lynch and Cross’ Performance Pyramid. Flexibility is based on ‘how fast you can react to changes’. ie. Has your delivery time been shortened or customer complaints being resolved quickly enough? Productivity looks toward the most cost-effective way and timely means to achieve customer satisfaction and flexibility, and a simple measure can be amount of output generated per amount of input. It commonly relates to the fact that if too much time and cost is taken to process an output, you have to identify where is the bottleneck or any redundant steps (ie. do you really need a 2nd stage inspection?)

I believe the EFFICIENCY measure comes under the 3 E’s of a VFM audit, and another word to replace it is also called ‘productivity’ like above. However, you can’t give a good interpretation by just looking at one naked measure here – to make it useful, you must benchmark against best performers, or compare variances over a number of years, and see whether achieving a better efficiency measure might inhibit better economy or effectiveness measures otherwise.

The RESOURCE UTILIZATION measure is part of the downstream dimensions of Fitzgerald and Moon’s Building Block model. Its measure is also based on how much output per input ratio, just like above. Just be careful of its wording, and classify it under the right model.

Now, under the report writing, I clarified in the past with my lecturer that the professional marks available gives very little weighting on how you place the appendix. You could write down the calculations as you write your main report for easier reference, but I find it easily methodical to leave four front pages empty for my appendix, and the main report content later for neatness, so that I will ease the marker and make him breathe a sigh of relief, since he will be marking other scripts with messy workings all over the report. Just remember to add a reference your workings in the report.

References:

VFM audit in government organisations:
https://www.dfid.gov.uk/r4d/PDF/Outputs/Mis_SPC/60797_ITAD-VFM-Report-Dec10.pdf

Performance Measures to Evaluate the Impact of Best Practices
lams.epfl.ch/conference/bpmds07/program/Jansen_9.pdf

Ps: Your study text is NEVER your best friend!

Thanks for guju’s question and angryhamtaro’s answer!